PAR Technology (PAR) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	PAR TECHNOLOGY CORP
Entity Central Index Key	708,821
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,777,513
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenues:
Product	$ 21,444	$ 25,267	$ 43,528	$ 46,275
Service	11,804	12,100	23,508	22,474
Contract	19,410	21,561	40,927	45,397
Revenue, net	52,658	58,928	107,963	114,146
Costs of sales:
Product	16,137	18,292	32,579	33,200
Service	8,219	8,754	16,818	16,592
Contract	17,857	20,189	37,512	42,663
Cost of goods and services sold	42,213	47,235	86,909	92,455
Gross margin	10,445	11,693	21,054	21,691
Operating expenses:
Selling, general and administrative	7,058	6,845	14,600	13,505
Research and development	2,793	2,661	5,555	5,095
Amortization of identifiable intangible assets	242	249	483	498
Operating expenses	10,093	9,755	20,638	19,098
Operating income from continuing operations	352	1,938	416	2,593
Other (expense) income, net	(210)	20	(280)	(186)
Interest income (expense), net	3	(85)	32	(171)
Income from continuing operations before provision for income taxes	145	1,873	168	2,236
Provision for income taxes	(45)	(629)	(53)	(800)
Income from continuing operations	100	1,244	115	1,436
Discontinued operations
Loss on discontinued operations (net of tax)	(26)	(1,143)	(26)	(1,720)
Net income (loss)	$ 74	$ 101	$ 89	$ (284)
Basic Earnings per Share:
Income from continuing operations (in dollars per share)	$ 0.01	$ 0.08	$ 0.01	$ 0.09
Loss from discontinued operations (in dollars per share)	0	(0.07)	0	(0.11)
Net income (loss) (in dollars per share)	0	0.01	0.01	(0.02)
Diluted Earnings per Share:
Income from continuing operations (in dollars per share)	0.01	0.08	0.01	0.09
Loss from discontinued operations (in dollars per share)	0	(0.07)	0	(0.11)
Net income (loss) (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ (0.02)
Weighted average shares outstanding
Basic (in shares)	15,615	15,584	15,651	15,541
Diluted (in shares)	15,670	15,671	15,717	15,658

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract]
Net income (loss)	$ 74	$ 101	$ 89	$ (284)
Other comprehensive loss, net of applicable tax:
Foreign currency translation adjustments	(28)	(23)	(150)	(278)
Comprehensive income (loss)	$ 46	$ 78	$ (61)	$ (562)

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 5,374	$ 8,024
Accounts receivable - net	29,462	29,530
Inventories-net	25,392	21,499
Note receivable	4,366	0
Income taxes receivable	223	0
Deferred income taxes	6,689	6,741
Other current assets	4,559	3,808
Total current assets	76,065	69,602
Property, plant and equipment - net	6,055	5,716
Long term note receivable	0	4,259
Deferred income taxes	11,038	11,038
Goodwill	11,051	11,051
Intangible assets - net	11,102	10,898
Other assets	3,792	3,687
Total Assets	119,103	116,251
Current liabilities:
Current portion of long-term debt	2,156	2,103
Accounts payable	16,531	11,729
Accrued salaries and benefits	5,864	5,727
Accrued expenses	5,217	7,644
Customer deposits and deferred service revenue	11,732	10,819
Income taxes payable	0	279
Liabilities of discontinued operations	142	441
Total current liabilities	41,642	38,742
Long-term debt	476	566
Other long-term liabilities	8,759	8,883
Total liabilities	50,877	48,191
Commitments and contingencies
Shareholders' Equity:
Preferred stock, $.02 par value, 1,000,000 shares authorized	0	0
Common stock, $.02 par value, 29,000,000 shares authorized; 17,748,622 and 17,352,838 shares issued, 15,6770,513 and 15,644,729 outstanding at June 30, 2016 and December 31, 2015, respectively	350	347
Capital in excess of par value	45,977	45,753
Retained earnings	30,663	30,574
Accumulated other comprehensive loss	(2,928)	(2,778)
Treasury stock, at cost, 1,708,109 shares	(5,836)	(5,836)
Total shareholders' equity	68,226	68,060
Total Liabilities and Shareholders' Equity	$ 119,103	$ 116,251

CONSOLIDATED BALANCE SHEETS (U5

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Shareholders Equity:
Preferred stock, par value (in dollars per share)	$ 0.02	$ 0.02
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, authorized (in shares)	29,000,000	29,000,000
Common stock, issued (in shares)	17,478,622	17,352,838
Common stock, outstanding (in shares)	15,770,513	15,644,729
Treasury stock, at cost (in shares)	1,708,109	1,708,109

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 89	$ (284)
Loss from discontinued operations	26	1,720
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, amortization and accretion	1,606	1,464
Provision for bad debts	397	251
Provision for obsolete inventory	970	792
Equity based compensation	207	273
Deferred income tax	52	(662)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(329)	(2,092)
Inventories	(4,863)	367
Income tax receivable/(payable)	(490)	(102)
Other current assets	(751)	273
Other assets	(105)	(633)
Accounts payable	4,802	(4,064)
Accrued salaries and benefits	137	145
Accrued expenses	(1,488)	(375)
Customer deposits and deferred service revenue	913	2,535
Other long-term liabilities	(124)	(82)
Deferred tax equity based compensation	(9)	(61)
Net cash provided by (used in) operating activities-continuing operations	1,040	(535)
Net cash (used in) provided by operating activities-discontinued operations	(299)	(19)
Net cash provided by (used in) operating activities	741	(554)
Cash flows from investing activities:
Capital expenditures	(984)	(864)
Capitalization of software costs	(1,220)	(968)
Acquisition related consideration paid	(977)	0
Net cash used in investing activities -continuing operations	(3,181)	(1,832)
Net cash used in investing activities -discontinued operations	0	(556)
Net cash used in investing activities	(3,181)	(2,388)
Cash flows from financing activities:
Payments of long-term debt	(89)	(86)
Payments of other borrowings	(107,907)	(101,749)
Proceeds from other borrowings	107,907	100,025
Proceeds (repurchase) of stock awards	29	(1)
Net cash used in financing activities	(60)	(1,811)
Effect of exchange rate changes on cash and cash equivalents	(150)	(278)
Net decrease in cash and cash equivalents	(2,650)	(5,031)
Cash and cash equivalents at beginning of period	8,024	10,167
Cash and equivalents at end of period	5,374	5,136
Less cash and cash equivalents of discontinued operations at end of period	0	(300)
Cash and cash equivalents of continuing operations at end of period	5,374	4,836
Cash paid during the period for:
Interest	21	111
Income taxes, net of refunds	$ 551	$ 102

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 — Basis of Presentation The accompanying unaudited interim consolidated financial statements of PAR Technology Corporation (the “Company” or “PAR”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of the Company, such unaudited financial statements include all normal recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results of operations that may be expected for any future period. Certain amounts for prior periods have been reclassified to conform to the current period classification. The preparation of consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include: the carrying amount of property, plant and equipment, identifiable intangible assets and goodwill, equity based compensation, and valuation allowances for receivables, inventories and deferred income taxes. Actual results could differ from those estimates. The current economic conditions and the continued financial volatility in the U.S. and in many other countries in which the Company operates could contribute to decreased consumer confidence and continued economic uncertainty which may adversely impact the Company’s operating performance. The Company continues to see strength in the markets which it serves; however, the continued instability in the global economy could have an impact on purchases of the Company’s products, which could result in a reduction of sales, operating income and cash flows. A decline in these results could have a material adverse impact on the underlying estimates used in deriving the fair value of the Company’s reporting units used in support of its annual goodwill impairment test On November 4, 2015, the Company entered into an asset purchase agreement (“Springer-Miller APA”), pursuant to which it sold substantially all of the assets for its hotel/spa technology business owned and operated by the Company’s indirect wholly-owned subsidiaries under PAR Springer-Miller Systems, Inc., Springer-Miller International, LLC and Springer Miller Canada, ULC (collectively “PSMS”) to affiliates of Constellation Software Inc. Accordingly, the results of operations of PSMS have been classified as discontinued operations in the Consolidated Statements of Operation and Cash Flows in accordance with Accounting Standards Codification (“ASC”) ASC 205-20 ( Presentation of Financial Statements – Discontinued Operations The unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which has been filed with the Securities and Exchange Commission (“SEC”).

Divestiture and Discontinued Op

Divestiture and Discontinued Operations	6 Months Ended
	Jun. 30, 2016
Divestiture and Discontinued Operations [Abstract]
Divestiture and Discontinued Operations	Note 2 — Divestiture and Discontinued Operations In connection with the sale of the hotel/spa technology business, the total consideration to be received from the sale is $16.6 million in cash (the “Base Purchase Price”), with $12.1 million received at the time of closing, and $4.5 million receivable eighteen months after the closing date, a portion of which amount will be available to pay certain indemnification obligations of PSMS. The estimated fair value of the remaining portion of the note receivable, due on May 4, 2017, is approximately $4.4 million and accordingly has been included within current assets in PAR’s June 30, 2016 consolidated Balance Sheet. In addition to the Base Purchase Price, contingent consideration of up to $1,500,000 is available to PAR based on achievement of certain agreed-upon revenue and earnings targets for calendar years 2016 through 2018, as set forth in the APA. As of June 30, 2016, the Company has not recorded any amount associated with this contingent consideration as it does not believe achievement of the related targets is probable. At June 30, 2016 and December 31, 2015 there were $142,000 and $441,000 of accrued liabilities of discontinued operations recorded on the balance sheet. During the three and six months ended June 30, 2016, the Company paid a $977,000 working capital adjustment, of which $939,000 was included in accrued expenses at December 31, 2015, that resulted in a loss (net of tax) of $26,000. The working capital payment was estimated and paid as it was defined in the Springer-Miller APA. The following table summarizes the results from discontinued operations (in thousands): For the three months For the six months 2016 2015 2016 2015 Operations Total revenues $ - $ 4,364 $ - $ 8,770 Loss from discontinued operations before income taxes $ (38 ) $ (1,363 ) $ (38 ) $ (2,710 ) Benefit from income taxes 12 220 12 990 Loss from discontinued operations, net of taxes $ (26 ) $ (1,143 ) $ (26 ) $ (1,720 )

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2016
Accounts Receivable [Abstract]
Accounts Receivable	Note — Accounts Receivable The Company’s net accounts receivable consist of: (in thousands) June 30, December 31, Government segment: Billed $ 11,783 $ 9,400 Advanced billings (1,106 ) (1,266 ) 10,677 8,134 Hospitality segment: Accounts receivable - net 18,785 21,396 $ 29,462 $ 29,530 At June 30, 2016 and December 31, 2015, the Company had recorded allowances for doubtful accounts of $884,000 and $875,000, respectively, against hospitality segment accounts receivable.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
Inventories	Note — Inventories Inventories are primarily used in the manufacture, maintenance and service of hospitality products. The components of inventories, net consist of the following: (in thousands) June 30, December 31, Finished goods $ 10,642 $ 8,914 Work in process 411 263 Component parts 7,901 5,068 Service parts 6,438 7,254 $ 25,392 $ 21,499 At June 30, 2016 and December 31, 2015, the Company had recorded inventory reserves of $8.6 million and $8.8 million, respectively, against hospitality inventories, which relates primarily to service parts.

Identifiable intangible assets

Identifiable intangible assets and Goodwill	6 Months Ended
	Jun. 30, 2016
Identifiable intangible assets and Goodwill [Abstract]
Identifiable intangible assets and Goodwill	Note — Identifiable intangible assets and Goodwill The Company’s identifiable intangible assets represent intangible assets acquired in the Brink Software Inc. acquisition in 2014 and internally developed software costs. The Company capitalizes certain costs related to the development of computer software used in its hospitality segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and are included in research and development costs. The technological feasibility of a computer software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications including functions, features, and technical performance requirements. Software development costs incurred after establishing feasibility for software sold as a perpetual license, as defined within ASC 985-20 ( Software – Costs of Software to be sold, Leased, or Marketed Intangibles – Goodwill and Other – Internal – Use Software Annual amortization, charged to cost of sales when the product is available for general release to customers, is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs from continuing operations for the three and six months ended June 30, 2016 were $270,000 and $532,000, respectively. Amortization of capitalized software costs from continuing operations for the three and six months ended June 30, 2015 were $207,000 and $394,000, respectively. Amortization of intangible assets acquired in the Brink Software Inc. acquisition for the three and six months ended June 30, 2016 were $242,000 and $483,000, respectively. Amortization of intangible assets acquired in the Brink Software Inc. acquisition for the three and six months ended June 30, 2015 were $249,000 and $498,000, respectively. The components of identifiable intangible assets, excluding discontinued operations, are: (in thousands) June 30, December 31, Estimated Useful Life Acquired and internally developed software costs $ 13,945 $ 12,725 3 - 7 years Customer relationships 160 160 7 years Non-compete agreement 30 30 1 year 14,135 12,915 Less accumulated amortization (3,433 ) (2,417 ) $ 10,702 $ 10,498 Trademarks, trade names (non-amortizable) 400 400 N/A $ 11,102 $ 10,898 The expected future amortization of these intangible assets assuming straight-line amortization of capitalized software costs and acquisition related intangibles is as follows (in thousands): 2016 $ 1,043 2017 1,988 2018 1,823 2019 1,386 2020 1,181 Thereafter 3,281 Total $ 10,702 The Company tests goodwill for impairment on an annual basis on the first day of the fourth quarter or more often if events or circumstances indicate that there may be impairment. The Company operates in two reportable business segments, hospitality and government. Goodwill impairment testing is performed at the sub-segment level (referred to as a reporting unit). The two reporting units within continuing operations utilized by the Company for its impairment testing are: restaurant and government. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded. Once goodwill has been assigned to a specific reporting unit, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The amount of goodwill carried by the restaurant and government reporting units is $10.3 million and $0.8 million, respectively, at both June 30, 2016 and December 31, 2015.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock Based Compensation [Abstract]
Stock Based Compensation	Note — Stock Based Compensation The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation. The Company recorded stock based compensation of $141,000 and $207,000 for the three and six months ended June 30, 2016, respectively. The Company recorded stock based compensation of $28,000 and $273,000 for the three and six months ended June 30, 2015, respectively. The amount recorded for the three and six months ended June 30, 2016 was recorded net of benefits of $22,000 and $48,000, respectively, as a result of forfeitures of unvested stock awards prior to the completion of the requisite service period. The amount recorded for the three and six months ended June 30, 2015 was recorded net of benefits of $155,000 and $183,000, respectively, as a result of forfeitures of unvested stock awards prior to the completion of the requisite service period. At June 30, 2016, the aggregate unrecognized compensation expense related to non-vested equity awards was $1,363,000 (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2016 through 2019. During the first six months of 2016, the Company granted a total of 273,829 equity awards under the 2015 Equity Incentive Plan, including 110,500 restricted stock awards that vest upon achievement of 2016 financial performance targets or, that vest ratably upon achievement of financial performance targets for fiscal 2016, 2017 and 2018, and continued service for a period of three years from the date of grant. For the three and six month period ended June 30, 2016, the Company recognized compensation expense related to performance awards based on its estimate of the probability of achievement in accordance with ASC Topic 718.

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2016
Earnings per share [Abstract]
Earnings per share	Note — Earnings per share Earnings per share are calculated in accordance with ASC Topic 260 ( Earnings per Share) The following is a reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations (in thousands, except share and per share data): For the three months ended June 30, 2016 2015 Income from continuing operations $ 100 $ 1,244 Basic: Shares outstanding at beginning of period 15,607 15,585 Weighted average shares issued (cancelled) during the period, net 8 (1 ) Weighted average common shares, basic 15,615 15,584 Income from continuing operations per common share, basic $ 0.01 $ 0.08 Diluted: Weighted average common shares, basic 15,615 15,584 Dilutive impact of stock options and restricted stock awards 55 87 Weighted average common shares, diluted 15,670 15,671 Income from continuing operations per common share, diluted $ 0.01 $ 0.08 For the six months ended June 30, 2016 2015 Income from continuing operations $ 115 $ 1,436 Basic: Shares outstanding at beginning of period 15,645 15,592 Weighted average shares issued (cancelled) during the period, net 6 (51 ) Weighted average common shares, basic 15,651 15,541 Income from continuing operations per common share, basic $ 0.01 $ 0.09 Diluted: Weighted average common shares, basic 15,651 15,541 Dilutive impact of stock options and restricted stock awards 66 117 Weighted average common shares, diluted 15,717 15,658 Income from continuing operations per common share, diluted $ 0.01 $ 0.09

Segment and Related Information

Segment and Related Information	6 Months Ended
	Jun. 30, 2016
Segment and Related Information [Abstract]
Segment and Related Information	Note — Segment and Related Information The Company has two reportable business segments, hospitality and government – for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer, the Company’s chief operating decision maker, in deciding how to allocate resources and in assessing performance. Prior to the sale of the hotel/spa reporting unit on November 4, 2015 (see note 2), the Company was organized in three reporting units within its two business segments: restaurant/retail, hotel/spa and government. The Company identified government as a separate reportable segment and had aggregated the restaurant/retail and hotel/spa reporting units into one reportable business segment - hospitality - as they shared many similar economic characteristics. The hotel/spa reporting unit is now included within discontinued operations. Management views the government and hospitality segments separately in operating its business, as the products and services are different for each segment. The hospitality segment offers integrated solutions to the food service industry consisting of restaurants, grocery stores, contract food and specialty retail outlets. These offerings include industry leading software solutions utilized at the point-of-sale, back of store and corporate office and includes Brink POS®, and PAR’s food safety software platform - SureCheck®. Also offered within the hospitality segment, is PAR’s industry leading hardware, as well as software delivery services and other customer support including field service, installation, and twenty-four hour telephone support and depot repair. The government segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets. Information noted as “Other” primarily relates to the Company’s corporate, home office operations. Information as to the Company's segments is set forth below. Amounts below exclude discontinued operations. (in thousands) For the three months ended June 30, (in thousands) For the six months ended June 30, 2016 2015 2016 2015 Revenues: Hospitality $ 33,248 $ 37,367 $ 67,036 $ 68,749 Government 19,410 21,561 40,927 45,397 Total $ 52,658 $ 58,928 $ 107,963 $ 114,146 Operating (loss) income: Hospitality $ (800 ) $ 699 $ (1,300 ) $ 382 Government 1,496 1,288 3,303 2,533 Other (344 ) (49 ) (1,587 ) (322 ) 352 1,938 416 2,593 Other (loss) income, net (210 ) 20 (280 ) (186 ) Interest income (expense) 3 (85 ) 32 (171 ) Income before provision for income taxes $ 145 $ 1,873 $ 168 $ 2,236 Depreciation, amortization and accretion: Hospitality $ 756 $ 667 $ 1,488 $ 1,304 Government 10 13 19 25 Other 63 66 99 135 Total $ 829 $ 746 $ 1,606 $ 1,464 Capital expenditures including software costs: Hospitality $ 702 $ 1,107 $ 1,650 $ 1,735 Government 32 - 39 - Other 489 37 515 97 Total $ 1,223 $ 1,144 $ 2,204 $ 1,832 Revenues by country: United States $ 47,571 $ 50,547 $ 97,790 $ 100,324 Other Countries 5,087 8,381 10,173 13,822 Total $ 52,658 $ 58,928 $ 107,963 $ 114,146 The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, 2016 December 31, 2015 Hospitality $ 78,746 $ 72,948 Government 12,105 10,052 Other 28,252 33,251 Total $ 119,103 $ 116,251 The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations. (in thousands) June 30, 2016 December 31, 2015 United States $ 106,364 $ 100,960 Other Countries 12,739 15,291 Total $ 119,103 $ 116,251 The following table represents Goodwill by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, December 31, Hospitality $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051 Customers comprising 10% or more of the Company's total revenues, excluding discontinued operations, are summarized as follows: For the three months ended June 30, For the six months ended June 30 , 2016 2015 2016 2015 Hospitality segment McDonald’s Corporation 24 % 24 % 21 % 21 % Yum! Brands, Inc. 10 % 14 % 11 % 11 % Government segment U.S. Department of Defense 37 % 37 % 38 % 40 % All Others 29 % 25 % 30 % 28 % 100 % 100 % 100 % 100 % No other customer within All Others represented more than 10% of the Company’s total revenue for the three and six months ended June 30, 2016 or 2015.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 9 — Fair Value of Financial Instruments The Company’s financial instruments have been recorded at fair value using available market information and valuation techniques. The fair value hierarchy is based upon three levels of input, which are: Level 1 − quoted prices in active markets for identical assets or liabilities (observable) Level 2 − inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in inactive markets, or other inputs that are observable market data for essentially the full term of the asset or liability (observable) Level 3 − unobservable inputs that are supported by little or no market activity, but are significant to determining the fair value of the asset or liability (unobservable) The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables and debt instruments. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of June 30, 2016 and December 31, 2015 were considered representative of their fair values. The estimated fair value of the Company’s long-term debt and line of credit at June 30, 2016 and December 31, 2015 was based on variable and fixed interest rates at June 30, 2016 and December 31, 2015, respectively, for new issues with similar remaining maturities and approximates the respective carrying values at June 30, 2016 and December 31, 2015. The deferred compensation assets and liabilities primarily relate to the Company’s deferred compensation plan, which allows for pre-tax salary deferrals for certain key employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to the hypothetical investments. The Company holds insurance investments to partially offset the Company’s liabilities under the deferred compensation plan, which are recorded at fair value each period using the cash surrender value of the insurance investments. The Company has obligations to the former owners of Brink Software Inc., which are payable in cash, if the conditions outlined in the stock purchase agreement among the Company and Brink Software Inc. (together with others) dated September 18, 2014 (the “Brink SPA”) are satisfied. The fair value of this contingent consideration payable was estimated using a discounted cash flow method, with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, ( Fair Value Measurements and Disclosures The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands): Level 3 Inputs Liabilities Balance at December 31, 2015 $ 5,130 New level 3 liability - Total gains (losses) reported in earnings - Transfers into or out of Level 3 - Balance at June 30, 2016 $ 5,130

Divestiture and Discontinued 16

Divestiture and Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2016
Divestiture and Discontinued Operations [Abstract]
Summarized financial information of discontinued operations	The following table summarizes the results from discontinued operations (in thousands): For the three months For the six months 2016 2015 2016 2015 Operations Total revenues $ - $ 4,364 $ - $ 8,770 Loss from discontinued operations before income taxes $ (38 ) $ (1,363 ) $ (38 ) $ (2,710 ) Benefit from income taxes 12 220 12 990 Loss from discontinued operations, net of taxes $ (26 ) $ (1,143 ) $ (26 ) $ (1,720 )

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2016
Accounts Receivable [Abstract]
Accounts receivable, net	The Company’s net accounts receivable consist of: (in thousands) June 30, December 31, Government segment: Billed $ 11,783 $ 9,400 Advanced billings (1,106 ) (1,266 ) 10,677 8,134 Hospitality segment: Accounts receivable - net 18,785 21,396 $ 29,462 $ 29,530

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
Components of inventory	The components of inventories, net consist of the following: (in thousands) June 30, December 31, Finished goods $ 10,642 $ 8,914 Work in process 411 263 Component parts 7,901 5,068 Service parts 6,438 7,254 $ 25,392 $ 21,499

Identifiable intangible asset19

Identifiable intangible assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2016
Identifiable intangible assets and Goodwill [Abstract]
Components of identifiable intangible assets	The components of identifiable intangible assets, excluding discontinued operations, are: (in thousands) June 30, December 31, Estimated Useful Life Acquired and internally developed software costs $ 13,945 $ 12,725 3 - 7 years Customer relationships 160 160 7 years Non-compete agreement 30 30 1 year 14,135 12,915 Less accumulated amortization (3,433 ) (2,417 ) $ 10,702 $ 10,498 Trademarks, trade names (non-amortizable) 400 400 N/A $ 11,102 $ 10,898
Future amortization of intangible assets	The expected future amortization of these intangible assets assuming straight-line amortization of capitalized software costs and acquisition related intangibles is as follows (in thousands): 2016 $ 1,043 2017 1,988 2018 1,823 2019 1,386 2020 1,181 Thereafter 3,281 Total $ 10,702

Earnings Per share (Tables)

Earnings Per share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings per share [Abstract]
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations	The following is a reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations (in thousands, except share and per share data): For the three months ended June 30, 2016 2015 Income from continuing operations $ 100 $ 1,244 Basic: Shares outstanding at beginning of period 15,607 15,585 Weighted average shares issued (cancelled) during the period, net 8 (1 ) Weighted average common shares, basic 15,615 15,584 Income from continuing operations per common share, basic $ 0.01 $ 0.08 Diluted: Weighted average common shares, basic 15,615 15,584 Dilutive impact of stock options and restricted stock awards 55 87 Weighted average common shares, diluted 15,670 15,671 Income from continuing operations per common share, diluted $ 0.01 $ 0.08 For the six months ended June 30, 2016 2015 Income from continuing operations $ 115 $ 1,436 Basic: Shares outstanding at beginning of period 15,645 15,592 Weighted average shares issued (cancelled) during the period, net 6 (51 ) Weighted average common shares, basic 15,651 15,541 Income from continuing operations per common share, basic $ 0.01 $ 0.09 Diluted: Weighted average common shares, basic 15,651 15,541 Dilutive impact of stock options and restricted stock awards 66 117 Weighted average common shares, diluted 15,717 15,658 Income from continuing operations per common share, diluted $ 0.01 $ 0.09

Segment and Related Informati21

Segment and Related Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment and Related Information [Abstract]
Information of the Company's segments	Information as to the Company's segments is set forth below. Amounts below exclude discontinued operations. (in thousands) For the three months ended June 30, (in thousands) For the six months ended June 30, 2016 2015 2016 2015 Revenues: Hospitality $ 33,248 $ 37,367 $ 67,036 $ 68,749 Government 19,410 21,561 40,927 45,397 Total $ 52,658 $ 58,928 $ 107,963 $ 114,146 Operating (loss) income: Hospitality $ (800 ) $ 699 $ (1,300 ) $ 382 Government 1,496 1,288 3,303 2,533 Other (344 ) (49 ) (1,587 ) (322 ) 352 1,938 416 2,593 Other (loss) income, net (210 ) 20 (280 ) (186 ) Interest income (expense) 3 (85 ) 32 (171 ) Income before provision for income taxes $ 145 $ 1,873 $ 168 $ 2,236 Depreciation, amortization and accretion: Hospitality $ 756 $ 667 $ 1,488 $ 1,304 Government 10 13 19 25 Other 63 66 99 135 Total $ 829 $ 746 $ 1,606 $ 1,464 Capital expenditures including software costs: Hospitality $ 702 $ 1,107 $ 1,650 $ 1,735 Government 32 - 39 - Other 489 37 515 97 Total $ 1,223 $ 1,144 $ 2,204 $ 1,832 Revenues by country: United States $ 47,571 $ 50,547 $ 97,790 $ 100,324 Other Countries 5,087 8,381 10,173 13,822 Total $ 52,658 $ 58,928 $ 107,963 $ 114,146
Identifiable assets by business segment	The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, 2016 December 31, 2015 Hospitality $ 78,746 $ 72,948 Government 12,105 10,052 Other 28,252 33,251 Total $ 119,103 $ 116,251
Identifiable assets by geographic area	The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations. (in thousands) June 30, 2016 December 31, 2015 United States $ 106,364 $ 100,960 Other Countries 12,739 15,291 Total $ 119,103 $ 116,251
Goodwill by business segment	The following table represents Goodwill by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, December 31, Hospitality $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051
Revenue percentage by customer/segment	Customers comprising 10% or more of the Company's total revenues, excluding discontinued operations, are summarized as follows: For the three months ended June 30, For the six months ended June 30 , 2016 2015 2016 2015 Hospitality segment McDonald’s Corporation 24 % 24 % 21 % 21 % Yum! Brands, Inc. 10 % 14 % 11 % 11 % Government segment U.S. Department of Defense 37 % 37 % 38 % 40 % All Others 29 % 25 % 30 % 28 % 100 % 100 % 100 % 100 %

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments [Abstract]
Summary of changes in fair value of the Company's Level 3 assets and liabilities that are measured at fair value on a recurring basis	The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands): Level 3 Inputs Liabilities Balance at December 31, 2015 $ 5,130 New level 3 liability - Total gains (losses) reported in earnings - Transfers into or out of Level 3 - Balance at June 30, 2016 $ 5,130

Divestiture and Discontinued 23

Divestiture and Discontinued Operations (Details) - USD ($)	Nov. 04, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Working capital adjustments paid				$ 977,000	$ 0
Summary of Results of Discontinued Operations [Abstract]
Loss from discontinued operations, net of taxes		$ (26,000)	$ (1,143,000)	(26,000)	(1,720,000)
PAR Springer Miller Systems Inc [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration	$ 16,600,000
Consideration received	12,100,000
Consideration receivable	4,500,000
Estimated fair value of the notes receivable	4,400,000
Consideration available upon achievement of targets	$ 1,500,000
Liabilities of discontinued operations		142,000		142,000		$ 441,000
Working capital adjustments paid		977,000		977,000
Working capital adjustments included in accrued expenses						$ 939,000
Summary of Results of Discontinued Operations [Abstract]
Total revenues		0	4,364,000	0	8,770,000
Loss from discontinued operations before income taxes		(38,000)	(1,363,000)	(38,000)	(2,710,000)
Benefit from income taxes		12,000	220,000	12,000	990,000
Loss from discontinued operations, net of taxes		$ (26,000)	$ (1,143,000)	$ (26,000)	$ (1,720,000)

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts Receivable [Abstract]
Accounts receivable - net	$ 29,462,000	$ 29,530,000
Allowances for doubtful accounts	884,000	875,000
Government segment [Member]
Accounts Receivable [Abstract]
Government contract receivable	10,677,000	8,134,000
Government segment [Member] | Billed [Member]
Accounts Receivable [Abstract]
Billed	11,783,000	9,400,000
Government segment [Member] | Advance billings [Member]
Accounts Receivable [Abstract]
Advanced billings	(1,106,000)	(1,266,000)
Hospitality segment [Member]
Accounts Receivable [Abstract]
Accounts receivable - net	$ 18,785,000	$ 21,396,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Component of inventory use in hospitality product [Abstract]
Finished goods	$ 10,642	$ 8,914
Work in process	411	263
Component parts	7,901	5,068
Service parts	6,438	7,254
Inventory net	25,392	21,499
Inventory reserves	$ 8,600	$ 8,800

Identifiable intangible asset26

Identifiable intangible assets and Goodwill (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)SegmentUnit	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
Software costs capitalized	$ 561,000	$ 558,000	$ 1,220,000	$ 968,000
Amortization of capitalized software costs	270,000	207,000	532,000	394,000
Amortization of identifiable intangible assets	242,000	$ 249,000	$ 483,000	$ 498,000
Number of operating segments | Segment			2
Number of reporting units | Unit			2
Goodwill	11,051,000		$ 11,051,000		$ 11,051,000
Components of identifiable intangible assets [Abstract]
Intangible assets - gross	14,135,000		14,135,000		12,915,000
Less accumulated amortization	(3,433,000)		(3,433,000)		(2,417,000)
Total	10,702,000		10,702,000		10,498,000
Intangible assets - net	11,102,000		11,102,000		10,898,000
Future amortization of intangible assets assuming straight-line amortization of capitalized software costs [Abstract]
2,016	1,043,000		1,043,000
2,017	1,988,000		1,988,000
2,018	1,823,000		1,823,000
2,019	1,386,000		1,386,000
2,020	1,181,000		1,181,000
Thereafter	3,281,000		3,281,000
Total	10,702,000		10,702,000		10,498,000
Trademarks, Trade Names [Member]
Components of identifiable intangible assets [Abstract]
Indefinite-lived non-amortizable intangible assets	400,000		400,000		400,000
Acquired and Internally Developed Software Costs [Member]
Components of identifiable intangible assets [Abstract]
Intangible assets - gross	13,945,000		$ 13,945,000		12,725,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			7 years
Components of identifiable intangible assets [Abstract]
Intangible assets - gross	160,000		$ 160,000		160,000
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			1 year
Components of identifiable intangible assets [Abstract]
Intangible assets - gross	30,000		$ 30,000		30,000
Restaurants [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	10,300,000		10,300,000		10,300,000
Government [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 800,000		$ 800,000		$ 800,000
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			3 years
Minimum [Member] | Acquired and Internally Developed Software Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			3 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			7 years
Maximum [Member] | Acquired and Internally Developed Software Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life			7 years

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 141,000	$ 28,000	$ 207,000	$ 273,000
Stock-based compensation expense, tax benefit	22,000	$ 155,000	48,000	$ 183,000
Unrecognized compensation expense	$ 1,363,000		$ 1,363,000
2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under plan approved by directors (in shares)	273,829		273,829
2015 Equity Incentive Plan [Member] | Performance Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted (in shares)			110,500
Continued service period for awards to vest			3 years

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations [Abstract]
Income from continuing operations	$ 100	$ 1,244	$ 115	$ 1,436
Basic [Abstract]
Shares outstanding at beginning of period (in shares)	15,607,000	15,585,000	15,645,000	15,592,000
Weighted average shares issued (cancelled) during the period, net (in shares)	8,000	(1,000)	6,000	(51,000)
Weighted average common shares, basic (in shares)	15,615,000	15,584,000	15,651,000	15,541,000
Income from continuing operations per common share, basic (in dollars per share)	$ 0.01	$ 0.08	$ 0.01	$ 0.09
Diluted [Abstract]
Weighted average common shares, basic (in shares)	15,615,000	15,584,000	15,651,000	15,541,000
Dilutive impact of stock options and restricted stock awards (in shares)	55,000	87,000	66,000	117,000
Weighted average common shares, diluted (in shares)	15,670,000	15,671,000	15,717,000	15,658,000
Income from continuing operations per common share, diluted (in dollars per share)	$ 0.01	$ 0.08	$ 0.01	$ 0.09
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock options outstanding (in shares)	38,000	279,000	26,000	208,000

Segment and Related Informati29

Segment and Related Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Segmenth	Jun. 30, 2015USD ($)
Segment and Related Information [Abstract]
Number of reportable segments | Segment			3
Information as to the Company's segments [Abstract]
Revenues	$ 52,658	$ 58,928	$ 107,963	$ 114,146
Operating (loss) income	352	1,938	416	2,593
Other (loss) income, net	(210)	20	(280)	(186)
Interest income (expense)	3	(85)	32	(171)
Income from continuing operations before provision for income taxes	145	1,873	168	2,236
Depreciation, amortization and accretion	829	746	1,606	1,464
Capital expenditures including software costs	1,223	1,144	2,204	1,832
Other [Member]
Information as to the Company's segments [Abstract]
Operating (loss) income	(344)	(49)	(1,587)	(322)
Depreciation, amortization and accretion	63	66	99	135
Capital expenditures including software costs	489	37	$ 515	97
Reportable Segments [Member] | Hospitality [Member]
Segment and Related Information [Abstract]
Number of reportable segments | Segment			1
Number of hours of telephone support for hospitality segment | h			24
Information as to the Company's segments [Abstract]
Revenues	33,248	37,367	$ 67,036	68,749
Operating (loss) income	(800)	699	(1,300)	382
Depreciation, amortization and accretion	756	667	1,488	1,304
Capital expenditures including software costs	702	1,107	$ 1,650	1,735
Reportable Segments [Member] | Government [Member]
Segment and Related Information [Abstract]
Number of reportable segments | Segment			1
Information as to the Company's segments [Abstract]
Revenues	19,410	21,561	$ 40,927	45,397
Operating (loss) income	1,496	1,288	3,303	2,533
Depreciation, amortization and accretion	10	13	19	25
Capital expenditures including software costs	32	0	39	0
Reportable Geographical Components [Member] | United States [Member]
Information as to the Company's segments [Abstract]
Revenues	47,571	50,547	97,790	100,324
Reportable Geographical Components [Member] | Other Countries [Member]
Information as to the Company's segments [Abstract]
Revenues	$ 5,087	$ 8,381	$ 10,173	$ 13,822

Segment and Related Informati30

Segment and Related Information, Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Identifiable assets by geographic area [Abstract]
Identifiable assets	$ 119,103	$ 116,251
Goodwill by business segment [Abstract]
Goodwill	11,051	11,051
Government [Member]
Goodwill by business segment [Abstract]
Goodwill	800	800
Other [Member]
Identifiable assets by geographic area [Abstract]
Identifiable assets	28,252	33,251
Reportable Segments [Member] | Hospitality [Member]
Identifiable assets by geographic area [Abstract]
Identifiable assets	78,746	72,948
Goodwill by business segment [Abstract]
Goodwill	10,315	10,315
Reportable Segments [Member] | Government [Member]
Identifiable assets by geographic area [Abstract]
Identifiable assets	12,105	10,052
Goodwill by business segment [Abstract]
Goodwill	736	736
Reportable Geographical Components [Member] | United States [Member]
Identifiable assets by geographic area [Abstract]
Identifiable assets	106,364	100,960
Reportable Geographical Components [Member] | Other Countries [Member]
Identifiable assets by geographic area [Abstract]
Identifiable assets	$ 12,739	$ 15,291

Segment and Related Informati31

Segment and Related Information, Revenue By Major Customer (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Major Customer [Line Items]
Percentage of revenue generated by customer	100.00%	100.00%	100.00%	100.00%
All Others [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue generated by customer	29.00%	25.00%	30.00%	28.00%
Reportable Segments [Member] | Hospitality segment [Member] | McDonald's Corporation [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue generated by customer	24.00%	24.00%	21.00%	21.00%
Reportable Segments [Member] | Hospitality segment [Member] | Yum! Brands, Inc. [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue generated by customer	10.00%	14.00%	11.00%	11.00%
Reportable Segments [Member] | Government segment [Member] | U.S. Department of Defense [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue generated by customer	37.00%	37.00%	38.00%	40.00%

Fair Value of Financial Instr32

Fair Value of Financial Instruments (Details) - Contingent Consideration Liability [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2015	$ 5,130
New level 3 liability	0
Total gains (losses) reported in earnings	0
Transfers into or out of Level 3	0
Balance at June 30, 2016	$ 5,130